Secured Loans
What is a Secured Loan?
Secured loans are a specific type of borrowing mechanism which allows the lender to retain security over an asset until the loan has been repaid.
In general terms, secured loans help home-owners borrow equity out of their property, without the need to restructure other loans they may have secured against the same property, such as a mortgage.
In cases where a mortgage is already in place, the secured loan will take security as a second charge against the property concerned, behind the first charge of the mortgage.
Benefits of taking a secured loan include allowing a home-owner access to equity without the need to restructure existing borrowings.
This can save the home-owner the substantial cost of redemption penalties which may exists on his current mortgage product.
Secured loans can vary in length, depending on the amount borrowed and the ability the applicant has to afford the size of the repayments, but in general secured loans have terms of between 10 - 25 years.
For further information on Secured Loans please call an adviser on 0800 088 7502
